How does one go about investing in gold and silver?

Omar Mossadek answers:

Investing In Silver – What Are The Advantages Of Investing In Silver Today?

A few of my friends have invested in both silver and gold and seem to be doing quite well despite the stock market downturn. Is this the way to structure your investments for the future?

Omar Mossadek answers:

Yes — that’s one of the ways to create wealth or at least preserve it in volatile times. Investing in silver and other precious metals (notably gold) is a way to beat inflation and ‘hedge’ your finances against political & economic uncertainty. Between 1971-1981, when the US Dollar lost more than half of its value, silver prices rose nearly 5 times.

Silver is the least expensive of all precious metals, so investing in it is a way to diversify your portfolio. See it as a way to preserve your wealth and a smart option for financial security. You can invest in silver as bullion bars, coins, mutual funds and certificates, among others. Each has its advantages and disadvantages.

Paul asks…

Difference between investing in silver bars and silver coins?

Can someone please tell me the difference?

And why there is a price difference between Maple leafs made in 2011,2010,2009 etc? It is all 99,9%silver

Omar Mossadek answers:

Minting costs, and therefore premiums are typically less for bars than for rounds (coins). The reason is because there is more labor involved in minting 100 1oz coins than there is a single 100oz bar.

Then, there is the issue of private minting, vs. Government minting. Government minted coins command a higher premium because they are widely recognized and therefore perhaps more trusted to be of the purity and weight that is stamped on them. However, in the case of Silver, the value of a 1 oz round is not sufficient (at least not yet) to make private minted “fakes” much of a problem. Many investors prefer private minted silver coins and bars because of the lower premiums. There is an argument that in a currency crisis, the premium currently commanded by government coins could mostly evaporate (an idea supported by other currency crises throughout history), and therefore paying a premium for gov’t minted coins is a waste. (Silver is Silver is Silver…)
There is a of course a possibility that this idea is wrong, in which case the premium paid will be retained when you go to sell or spend the coins. It’s your choice.
Personally, I’d rather pay less for a coin or bar that has no chance of losing something it never had – i.e. A price premium for being government minted. Silver coins or bars, regardless of who minted them will never be worth less than the current worldwide spot price of Silver.

As for difference between different years of gov’t minted coins, that’s mainly due to the relative rarity of the years they were minted. Once again, that perceived numismatic value difference could disappear quite quickly.

One final fact to consider is that 99.9% Silver coins, regardless of mintage, are unsuitable for circulating coinage. Pure silver coins wear VERY quickly in circulation, which is why almost all silver coins intended for circulation were alloyed with other metals such as copper. Some people prefer to invest in 90% Silver US coins (pre-1965 dimes, quarters, halves, and dollars) because they are durable, gov’t minted, and command much lower premiums than pure silver coins or bars.

Lisa asks…

What do you think about investing in Silver?

Hello,

I would like to know your view on Silver as an investment. Thanks a lot!

Omar Mossadek answers:

All investments have some level of risk involved.
That being said As well as being a precious metal Silver has many industrial uses with new uses arriving every day. Silver demand has increased every year for the past ten years and is not expected to slow. Just like any natural resource there is a limited supply. Because many industrial uses of Silver are in such small amounts the cost of recycling is not cost effective and those small amounts are often discarded after use ending up in landfills. The end result as the demand continues to increase and the supply decreases the price goes up.

Mary asks…

In commodities trading, what’s the difference between investing in silver and investing in silver futures?

Some sites list them separately. I’m just starting to read about this sort of thing and though I’d ask.

Omar Mossadek answers:

Raja is quite incorrect. Futures are not a right to buy or sell in the futures – that is an option. When you buy a futures contract, you are entering a contract to take delivery in the future – you can either actually take delivery, or offset your position (at a profit or loss) prior to the delivery period.

Sandy asks…

Okay I don’t get it what is up with Republicans and Gold/Silver investing etc?

I’m sorry but i grew up in a liberal neighborhood with democrats

i’ve never heard of investingin gold until moving into a republican town now everyone talks about it etc

why? I just don’t get it its a metal its on the stock market i guess nobody really talks about it until i got into a republican town and i still don’t get it an its not even making ton of money

Omar Mossadek answers:

Trading is similar to casino gambling – you have to understand psychology more than the game itself.

In trading, you go where it’s safest and more lucrative. So if cash, bonds, stocks are iffy you buy metal

James asks…

Is investing in silver a good choice?

I have a settlement coming to me soon and am considering buying silver, I think over the next ten to twenty years the price should go up substantially am I wrong?

Omar Mossadek answers:

Silver is the greatest investment ever in my opinion.

The ongoing collapse of the USA dollar and economy is the reason why. You can not print phantom money out of thin air and expect to have a recovery. The real unemployment rate is 17.2% now and this will keep going higher as we move into the next stage of the economic collapse which is that of the commercial real estate sector.

Short term food and water should be better than silver, but I see silver great in the next couple years when bread is $99 a loaf and silver is well over a few hundred per oz. This will help keep the purchasing power as our fiat dollars which will have no value soon as the currencies destruct.

Gold i am unsure of for the reasons that “Why is it so good? Why is it money?” I can not answer those questions, but with silver the uses are high and the probability odds that solar panels will take off with newer cleaner energy are massive. This is why I love Silver.

The smartest thing is to get out of fiat dollars before it is too late. It is very clear to see that those whom are still brainwashed by the media and the powers that be in control have no clue to what is going on the economy and they will be rushing to real money and assets when TSHTF.

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